ERBIL, Kurdistan Region- Iran on Saturday evening announced that Iraq is now exempt from restrictions placed on maritime traffic in the Strait of Hormuz, following a month-long economic standstill that has crippled the Iraqi oil sector.
Ebrahim Zolfaghari, spokesperson for the IRGC’s Khatam al-Anbiya Headquarters, stated that "brotherly Iraq" is exempt from the blockade, which he claimed would now only apply to "hostile nations." Zolfaghari added that Tehran maintains "the utmost respect for Iraqi national sovereignty."
The sudden policy shift follows a five week bombing campaign against Iran by the US and Israel. Tensions reached a new height on Saturday when US President Donald Trump issued a 48-hour ultimatum, warning that "all hell will break loose" if his administration's demands are not met, after reminding that he gave Iran ten days to “MAKE A DEAL OR OPEN UP THE HORMUZ STRAIT” .
The exemption follows a period where Iraq unsuccessfully tried negotiating with Iran for relief in early March. Recent data shows that the resulting blockade brought Iraq’s oil-dependent economy to a halt. Iraq’s combined oil production plummeted from 4.5 million barrels per day (bpd) in February 2026 to just 1.33 million bpd today.